Tesco has called time on its long-running plan to redeveloped Monaco House

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Mr Lewis said: "It is with a heavy heart that I am announcing that we are unable to proceed with 49 planned new store developments across the UK, including our planned store in Bristol Street.

"Our performance as a business has fallen significantly short of where we would want it to be and my absolute imperative has to be to protect the future of our business for the 300,000 colleagues we employ in communities all over the UK.

"I know that this news will be a real disappointment to many people in the local community and we're extremely grateful for the support we've received for our plans.

"I am very aware of the importance of the site to the area and I am determined that we will work closely with Birmingham City Council to find the right solution for the local community."

It is unlikely the company will sell the Monaco House site to a competitor but its decision to withdraw from the project means it would be easier for nearby sites to secure planning permission for food stores - particulary after Tesco's permission runs out.

Tesco won the first round but then a government inspector ruled, following a public inquiry in 2007, that the Crest Nicholson/Asda plan for the Park Central site in the opposite side of Bristol Street should be approved and Tesco's Monaco House scheme refused.

With nothing built and new planning regulations introduced, the Asda permission expired in 2013 and Tesco revived their scheme.